Latest news with #GoldETFs
Time of India
02-07-2025
- Business
- Time of India
Gold Rush 2.0: Corporates strike it rich in ETF bonanza
Growing institutional confidence Live Events Inflation, risk hedge Tax tweaks (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Gold has been the traditional store of value for the ordinary Indian saver over centuries. Corporates, too, are now big investors in the safe-haven asset—rather, its paper derivative—and have an increasingly dominant share in gold exchange-traded funds (ETFs).Over the past five years, through which the value of gold per troy ounce surged 86% in dollar terms, corporate assets under management (AUM) in gold ETFs has climbed at a rapid 55% annually, reaching ₹36,154.5 crore by March 2025, showed Value Research share of total Gold ETF AUM has climbed to a record high of 61.4%—from 50% in March contrast, retail investors saw their share in the AUM more than halve—to 7.5% in 2025 from 16.1% in 2020. However, the number of retail folios jumped 37% year-on-year in 2025 to about 6.8 million, while their AUM climbed 39% to ₹4,440 crore through the year that witnessed the biggest price increase for the safe-haven metal on institutional buying investors include companies, family offices, trusts, and other organisations. Their growing participation is in the wake of the record-breaking rally in gold prices in the past corporate entities prefer investing in money market funds/liquid funds due to high liquidity and low risk. Liquid funds do not charge any entry or exit load, facilitating easy cash management. However, they are also looking at gold ETFs as a part of diversification of their investments as it is easier to hold gold in paper form.'They (institutions) are now more actively allocating to gold as part of diversified strategies aimed at managing risk and preserving capital,' said Vikram Dhawan, Head of Commodities and Fund Manager at Nippon India Mutual Fund. 'This shift reflects growing institutional confidence in Gold ETFs as an efficient and transparent vehicle for accessing bullion exposure within a regulated framework.'Gold prices crossed ₹1 lakh per 10 grams in June 2025, driven by safe-haven demand amid geopolitical tensions. At the end of March this year, 24-carat gold was priced at ₹89,000 per 10 grams, up nearly 30% from ₹69,000 a year earlier.A part of the corporate contribution to the total gold ETF AUM also includes retail investor contribution into the product through the Fund of Fund (FoF) category, which invests in these funds. Mutual funds' FoFs invest in other schemes or mutual funds report ETF holdings by investor type, the FoF investments into ETFs are typically classified under 'corporate' AUM and not under retail or HNI. This is because the holder of the ETF units is the FoF scheme itself, which is managed by a mutual fund.'The AUM figures primarily reflect corporate investments because retail investors usually access gold through Fund of Funds (FoFs), which in turn invest in Gold ETFs,' said Niranjan Avasthi, senior vice president, Edelweiss multi-asset funds, popular among investors, also allocate to gold ETFs. In cases where an AMC doesn't offer its own gold ETF, investments from its gold FoFs or multi-asset funds are routed into gold ETFs of other AMCs. These flows are classified as corporate AUM in the underlying gold ETFs, Avasthi that do not have their own gold ETF invest in such ETFs of other asset managers when money flows into their gold FoFs. As a result, this is recorded as corporate AUM in those gold ETFs, Avasthi higher flows from individual investors through gold FoFs are partly on account of the more favourable taxation since July 2024. The government, in its budget announcement, said long-term capital gains tax on gold and equity-oriented FoFs would be at 12.5% if held over 24 months.
Yahoo
30-06-2025
- Business
- Yahoo
Gold ETF Gains Outpace Bitcoin Funds in 2025
Gold exchange-traded funds are outperforming Bitcoin ETFs in 2025, with the SPDR Gold Shares (GLD) posting a 24.4% year-to-date return compared to 14.5% for the iShares Bitcoin Trust ETF (IBIT), according to FactSet data. The performance gap highlights a shift in investor preferences as precious metals regain favor over cryptocurrency investments. According to the FactSet data, GLD has attracted $8.3 billion in net flows year to date, while BlackRock's IBIT pulled in $14.9 billion despite lower returns. The divergence comes as Bloomberg Intelligence suggests gold could continue outpacing Bitcoin, with analysts pointing to potential market reversions and risk-asset appreciation cycles that may favor traditional safe-haven assets over volatile cryptocurrencies. According to Bloomberg's research, gold's year-to-date gain of about 25% through April versus Bitcoin's roughly 10% decline could signal a trend reversal, with the U.S. stock market potentially reaching a valuation apex that favors precious metals over speculative digital assets. GLD's monthly performance shows the gold ETF declined 1.4% over the past month, along with quarterly gains of just over 6%, according to the FactSet data. The fund has assets under management of $101.9 billion and carries a 0.4% expense ratio. IBIT posted a 1.2% gain over the past month and a 27.7% gain over three months, according to FactSet. The fund has $74.7 billion in assets and charges a 0.25% expense ratio. The precious metals sector extends beyond gold, with the iShares Silver Trust (SLV) posting a 23.9% year-to-date return that nearly matches gold's performance. According to FactSet data, BlackRock's silver ETF gained 7.7% over the past month and 5.2% over three months. SLV attracted $644.3 million in year-to-date flows and $636.5 million over the past month, according to FactSet. The fund has $17.5 billion in assets under management and a 0.5% expense ratio. Bloomberg Intelligence analysis suggests a shift away from risk assets and concerns about government spending could boost precious metals further. The research indicates cryptocurrencies may face pressure as markets reverse from recent peaks, with their high volatility working against them. Monthly flow data show gold funds continue attracting capital despite recent price volatility, with GLD pulling in $2.7 billion over the past month. IBIT maintained strong inflows of $3.2 billion during the same period, according to FactSet | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
